You've heard about the importance of diversification...that you should avoid "putting all of your eggs into one basket."
That's why each Missouri Target Date Fund includes a diversified blend of investments, combining many separate stock, diversifier and bond funds. By spreading your money across these different investment types, Missouri Target Date Funds give you access to a broad range of opportunities and helps manage the portfolio's overall risk. However, diversification doesn't ensure that your investments will grow or protect against a market downturn.
Over time, professional fund managers gradually adjust your investments for you, so your investment mix makes sense for your age. All of this happens automatically—you don't have to do a thing.
Investments in Missouri Target Date Funds are not guaranteed against loss of principal: at any time, your account value can be more or less than the original amount you contributed including at the time of the Fund's target date. Also investing in a Missouri Target Date Fund does not guarantee sufficient income in retirement.
Multiple Investments in a Single Strategy
Diversification does not eliminate the risk of loss.
* Target allocation as of January 1, 2011
^ Missouri Retirement Allocation Fund (formerly the Missouri 1995 Target Date Fund). This Fund is intended for retired investors whose original Missouri Target Date Fund has reached its final asset allocation of 20% stocks, 15% diversifiers and 65% bonds 15 years after its target date.